Japanese auto exports to China fell by 82pct YoY in October
Data from the Ministry of Finance showed that Japan's car exports to China fell by 82% YoY in October 2012 due to a widespread boycott of Japanese products in China in response to Japan's nationalization of disputed islands in the East China Sea.
This marks the steepest decline in auto exports to China since October 2001, when the exports fell 88.3% amid rising anti Japan sentiment following then Prime Minister Mr Junichiro Koizumi's visit to the controversial Yasukuni Shrine.
Japan posted a JPY 406.5 billion trade deficit with China in October 2012 as the Chinese economy slowed. Japan's exports of auto parts to the country declined 28.1% in October 2012, while those of electrical generators tumbled 42.7%.
The October 2012 trade deficit of JPY 548.9 billion a record for the month, marked the fourth straight month of red ink in Japan's trade account, and the figure was much bigger than the consensus forecast for a JPY 350 billion deficit.
Exports fell 6.5% YoY in October 2012 to JPY 5.14 trillion, slipping for the fifth month in a row. Car exports fell 12.3%, with shipments to China and Europe down sharply.
Imports also declined 1.6% to JPY 5.69 trillion. Imports of crude oil from Saudi Arabia and other oil producers fell 19.6%.
Exports to the US rose 3.1% on the year in October 2012, mainly in the auto sector, climbing for the 12th month in a row. Japan's trade surplus with the US also rose 7% to JPY 416.4 billion.
Meanwhile, Japan's trade deficit with China continued for the eight straight month and its trade surplus with Asian countries, including China, fell for the 20th consecutive month.
Source - Nikkei News